Procurement Risk:

Low

Score:

75/100

Government Policy

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Q57 75/100

Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?

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Legal framework Score: NS / 100
This indicator is not assigned a score in the GDI. Germany has clear, comprehensive, detailed and strict legislation that covers all defence and national…
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Corruption risks Score: 100 / 100
The procurement needs of the Armed Forces are organised by the ‘Bundesamt für Ausrüstung, Informationstechnik und Nutzung’ (Federal Office of Bundeswehr Equipment, Information Technology…
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Effectiveness Score: 50 / 100
Defence purchases are procured in line with legislation, although there are a few minor exceptions. Sometimes rules are bypassed, including because the contracts are…
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Q58 83/100

Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?

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Formal procedures Score: 100 / 100
The defence procurement cycle process for all varieties of procurement within the Ministry of Defence is defined in the Customer Product Management regulation (CPM).…
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Transparency Score: 50 / 100
Procedures for the entire defence procurement cycle are disclosed with clear explanations and in disaggregated form. This information includes assessments of needs, contract implementation…
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Implementation Score: 100 / 100
Contracting authorities are bound by the regulations under public procurement law (please also see Q65 for details). There are detailed policies and procedures for…
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Q59 75/100

Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?

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Independence Score: 75 / 100
Germany has two oversight mechanisms in place for defence procurement. First, parliamentary scrutiny, especially by the Defence Committee and the Budget Committee, and second,…
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Effectiveness Score: 75 / 100
Germany has two oversight mechanisms in place for defence procurement. First, parliamentary scrutiny, especially by the Defence Committee and the Budget Committee, and second,…
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Transparency Score: 75 / 100
Evidence of activity (e.g. reports, press announcements of the cancellation of procurement programmes, the release of financial information) is made available to the public…
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Q60 100/100

Are potential defence purchases made public?

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Policies Score: 100 / 100
The Government publishes comprehensive forward planning for potential purchases, which extends 10-15 years in advance, e.g. through a strategic defence review, in particular a…
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Notice of planned purchases Score: 100 / 100
The German government publishes the plans for defence purchases in detail for at least the next four years [1]. The adequate and timely information…
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Q61 50/100

Are actual defence purchases made public?

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Comprehensiveness Score: 50 / 100
Defence purchases are generally made public, but some information is omitted or included in aggregate or abbreviated form [1,2]. In line with EU Directive…
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Accessible data Score: 50 / 100
Data is released in an accessible format, which allows for useful comparisons (e.g. how many tenders a company has won) [1,2]. In line with…
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Capability Gap and Requirements Definition

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Q62 50/100

What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?

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Formal policies Score: 50 / 100
The required procedures and standards for companies are listed on the website of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support…
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Consistent implementation Score: 50 / 100
While there is some evidence that these policies and laws are implemented, including for strategically important suppliers, it is more difficult to assess how…
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Q63 83/100

Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?

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Procurement requirements Score: 100 / 100
Procurement requirements are derived from a national defence and security strategy, and there is logical flow down from strategy to individual procurements set out…
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Scrutiny Score: 50 / 100
There is active scrutiny conducted by a number of legally or constitutionally mandated oversight mechanisms (e.g. the parliamentary oversight committee, the inspector general or…
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Purchases Score: 100 / 100
The Ministry of Defence and the Armed Forces systematically base all purchases on clearly identified and quantified requirements, which are very detailed, well described…
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Tender Solicitation, Assessment and Contract Award

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Q64 50/100

Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?

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Open competition Score: 50 / 100
Public procurements in Germany are generally conducted as an open competition in accordance with international regulations such as the WTO GPA and specific German…
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Scrutiny of single/restricted competition procedures Score: 50 / 100
Public procurements in Germany are generally conducted as an open competition in accordance with international regulations such as the WTO GPA and specific German…
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Q65 88/100

Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?

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Conflicts of interest Score: 100 / 100
The contracting authorities are bound by the regulations under public procurement law, in particular the Act against Restraints of Competition (GWB), the Procurement Regulation…
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Audit Trail Score: 100 / 100
There is a comprehensive audit trail of which officials were involved in selecting suppliers and designing tender specification [1,2]. There is external verification that…
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Transparency Score: 100 / 100
Tender boards regulations and codes of conduct are partially transparent [1]. All arms reports go to Parliament [2,3,4]. As of January 2006, award procedures…
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Scrutiny Score: 50 / 100
There is some external verification that the particular specifications of the tender are appropriate. However, there appears to be a lack of evidence of…
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Q66 94/100

Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?

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Legal framework Score: 100 / 100
Laws are in place that prohibit collusion within the defence sector, where collusion is defined as between an official and a bidder or between…
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Sanctions Score: 100 / 100
There is clear legislation and implementing guidelines empowering procurement officials to exclude companies and senior company officials where there is a conviction or reasonable…
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Enforcement Score: 100 / 100
Cases are investigated or prosecuted through formal processes and without third-party interference (e.g. undue political influence) [1,2]. Furthermore, Germany will explore the establishment of…
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Training Score: 75 / 100
While procurement officials are trained to identify collusion patterns and report potential malpractice, there are questions over how regular this is. The guidelines for…
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Contract Delivery and In-Service Support

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Q67 81/100

Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?

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Reporting policies & procedures Score: 100 / 100
There are formal policies and procedures that outline how to monitor, assess and report upon a supplier’s service and or delivery obligations. These include…
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Transparency Score: 50 / 100
Some contracts are publicly available including modifications post award (e.g. change of subcontractor, change of beneficial owner, additional costs such as a consultant), which…
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Monitoring Score: 100 / 100
Officials regularly produce contract monitoring and completion reports. These include supplier and subcontractor performance appraisals, which are separately verified. If the contract was not…
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Enforcement Score: 75 / 100
According to the CPM (No. 239), the project manager, with the assistance of the Integrated Project Team (IPT), monitors the provision of the contractually…
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Q68 92/100

Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?

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Complaints mechanisms Score: 100 / 100
Formal mechanisms are in place to allow companies to complain about perceived malpractice in procurement. This may include both a court process and an…
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Effectiveness and Accessibility Score: 100 / 100
The complaints mechanisms available to companies seem to be efficient and reasonably priced, and are regularly used [1,2].
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Retaliation Score: 75 / 100
Reprimands (the first internal step to be taken by bidders who feel that they were placed at a disadvantage and/or that their rights were…
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Q69 83/100

What sanctions are used to punish the corrupt activities of a supplier?

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Sanctions Score: 100 / 100
In Germany, there is clear legislation and implementing guidelines that empower procurement officials to exclude companies and senior company officials where there is a…
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Undue influence Score: 75 / 100
Article 12, subsection (2) of the ‘Federal Government Directive Concerning the Prevention of Corruption in the Federal Administration’ states that private companies have to…
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Application of sanctions Score: 75 / 100
An offence can regularly result in a range of sanctions, including prosecution, exclusion from current and future competitions or other sanctions, including heavy fines…
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Offset Contracts

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Q70 100/100

When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?

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Legal framework Score: 100 / 100
In accordance with EU legislation, German legislation does not allow offsets [1]. Offsets are incompatible with EU primary law since they are not compatible…
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Due diligence Score: NA / 100
This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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Q71 NA/100

How does the government monitor offset contracts?

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Policies & procedures Score: NA / 100
This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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Transparency Score: NA / 100
This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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Monitoring Score: NA / 100
This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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Enforcement Score: NA / 100
This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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Q72 NA/100

What level of competition are offset contracts subject to?

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Score: NA / 100
This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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Agents / Brokers

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Q73 50/100

How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?

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Policies Score: 50 / 100
Article 8.2.1 of the ‘Zusätzliche Vertragsbedingungen des Bundesministeriums der Verteidigung zur Verdingungsordnung für Leistungen Teil B’ (Additional Terms of Contract of the Federal Ministry…
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Enforcement Score: 50 / 100
Sanctions are usually applied when policies and laws on the use of agents are violated. This is also related to the Ministry of Economic…
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Financing Package

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Q74 50/100

Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?

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Score: 50 / 100
Some details of the financing package are made publicly available and key elements, such as the sums involved and payment deadlines, are included. However,…
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Seller Influence

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Q75 NS/100

How common is it for defence acquisition decisions to be based on political influence by selling nations?

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Prevalence: selling nations Score: NS / 100
This indicator is not assigned a score in the GDI. Exclusive external political influence is rather uncommon for Germany. Some acquisitions are granted as…
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Justification Score: NS / 100
This indicator is not assigned a score in the GDI. The government cites clear and justifiable military need for purchases and from particular suppliers…
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Prevalence: domestic pressures Score: NS / 100
This indicator is not assigned a score in the GDI. Some acquisitions are granted as a result of domestic political pressure, but this is…
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